DO (Diamond Offshore Drilling) is on watch for a possible official long trade idea. While a break of this downtrend line + the 24.75 level could spark a lasting rally, I’m leaning towards a brief pop followed by a backtest of the downtrend. I’m only passing DO along as an unofficial trade idea for now for those that might be interested. Should I decide to add the stock as an official trade idea, the entry criteria, suggested stop & price targets will follow in another post.
Nice strong divergent low on the DO weekly chart which is likely to provide the impetus for a lasting breakout & rally above the lower downtrend line & resistance zone in the coming weeks to months.